Assessing Human Capital as an Element That Informs Remuneration and Promotion: A Case Study of the National Health Insurance Scheme

Abstract

The value of staff is something that is often over looked by many companies. In actuality, human capital is a valuable asset for many businesses. In the recent decade, the management of organizations has found that human resources have the greatest importance in gaining sustainable competitive advantage and efficiency. The purpose of this study was to assess Human Capital as an element that informs remuneration and promotion at the National Health Insurance Company. A cross – sectional survey was used to conduct the study. In all 10 senior management staff and 70 junior staff responded to the study. The results of the study revealed that there is no well- designed reward process and systems that are noticeable by the staff of the company. The reward scheme is more administrative than developing the potentials of the employees. Generally, staff of the national health insurance perceives “knowledge and skills” as the most important human capital development measures that determines reward and compensation in the organization. The study also revealed that there is no significant relationship between the human capital elements used and employee reward at the National Health Insurance. It can therefore be concluded that being a state institution the National Health Insurance company does not have a well - defined reward system on its own. The study therefore recommended that there is the need for a broader consultation among the government, management and employees of the National Health Insurance in addressing concerns regarding reward and performance.